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      Question

      Under the financial market framework's trading

      eligibility criteria, what is the operational consequence for an entity that lacks a valid LEI?
      A It faces a 5% credit conversion premium charge on its transactions Correct Answer Incorrect Answer
      B It is assigned a temporary interim foreign code for up to 90 days Correct Answer Incorrect Answer
      C It is completely barred and ineligible to execute trades or transactions in regulated markets Correct Answer Incorrect Answer
      D It must route its financial transactions through a middle-layer NBFC Correct Answer Incorrect Answer
      E Its operations are subject to a direct audit by GLEIF Correct Answer Incorrect Answer

      Solution

      Under the "No LEI, No Trade" rule, any eligible legal entity that does not hold a valid, active LEI code is completely barred and ineligible to execute transactions in financial markets regulated by the RBI.

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